27 September 2012 Last updated at 08:52 ET

Kings Square £60m revamp signed by developer

King's Square will be renamed King's Quarter once the revamp is complete

Developers have signed a £60m deal with the city council to revamp a run-down part of Gloucester.

Stanhope plc will invest the money in Kings Square to build new 30 new shops, restaurants and a bus station.

Director Martyn Chase said: "It's really important it triggers off a process for this project to really happen."

The area will also be renamed Kings Quarter and the aim is to open to the public within five years.

Analysis

Steve Knibbs BBC West

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When it was first built King's Square was a real focal point of the city - bustling, vibrant, a place to relax.

Children would play in the fountains as parents tried to drag them around the shops.

Eventually they were turned off and the life of the square was sucked out.

It became a place you' would skirt through rather than stop off - a haven for drinkers in parts and eventually the whole place was concreted over.

But now the square will become "King's Quarter" with £60m worth of shops, restaurants and a new bus station.

There is optimism that it will pour life back into this now rather sad part of the city.

'High priority'

The legal agreement signed between the two parties sets out the framework for the project, but is not a guarantee the revamp will take place.

"The deal leads us into design, planning permission, buying the land we need for the scheme, securing the retailers starting on site," added Mr Chase.

The company has also said there could be a new cinema for the Kings Square area which it believes would be sustainable - the old ABC cinema was shut and is now a pub.

Council leader Paul James has described the deal as "historic".

He added: "It officially commits all of us to working to make this development happen.

"It shows that Gloucester is continuing to buck the national trend as we attract inward investment of this magnitude."

The city has also had another £60m deal signed with the Peel Group at Gloucester Quays for a new leisure quarter for a gym, 10-screen cinema and restaurants.